The International Monetary Fund (IMF) says the U.S. is “getting carried away with [its] government austerity drive.” Fox Business News reported that the IMF’s fiscal affairs chief Carlo Cottarelli said, “We think this is just too much.”
Although the IMF has warned European governments to aggressively scale back deficits to “win back the confidence of lenders,” Cottarelli claims the U.S. faces “very little risk” of becoming overridden with debt like governments in the EU have.
“There is no need for the U.S. to move quickly,” Cottarelli said.
The Congressional Budget Office projects the U.S. deficit is on track to shrink “to the equivalent of 4 percent of national economic output” this year. That figure was seven percent last year.
If this projection happens, it will “be the sharpest contraction in the deficit since 1969.”